Apple and Huawei now dominate their parts of the China market. Although shipments have declined by 17% YoY both Apple and Huawei have flourished in the Chinese market gaining significant share at the expense of almost everybody else. Data from Counterpoint (see here) indicates that the source of Huawei’s great H1 2020 results was a market share gain in the...
Intel – The execution game. Intel reported good results and guidance driven by the pandemic but the news of another delay to its 7nm process caused consternation and increased concerns that Intel is losing its grip on manufacturing leadership. Q2 2020 revenues / EPS were $19.7bn / $1.19 ahead of estimates of $18.6bn / $1.04 as the stay at home...
Tesla Q2 2020 – Cash flow is king. Tesla reported good Q2 results as the sale of carbon credits helped it to report another profit while it managed to almost completely buck the general automotive trend of declining vehicle sales. Q2 revenues / EPS were $6.04bn / $2.18 compared to forecasts of $5.4bn / $1.45. China was the bright spot...
Texas Instruments – The canary Texas Instruments reported good results as its wide range of exposure cushioned it from the short-term problems in automotive and offered an indication of how other industries are coping. Q2 2020 Revenues / EPS were $3.24bn / $1.48 compared to forecasts of $2.95bn / $0.88. EPS of $1.48 included a one-time tax-related gain of $0.33....
A self-defeating retaliation. If China blocks Nokia and Ericsson exports, it will simply accelerate the migration of manufacturing from China that will cost Chinese jobs and incentivise other companies and industries to also leave China. China is considering placing export restrictions on Nokia and Ericsson such that the base stations that they manufacture in China will not be able to...
Any move needs to happen fast. The fact that TikTok is not that difficult to emulate shows that its real asset is its network of users which is why it has to restore confidence soon or see an erosion of its user base that could prove fatal. ByteDance, along with Huawei is one of the few Chinese technology companies that...
Netflix robbed Peter to pay Paul. Netflix reported good results, but it turns out that the very strong subscriber numbers in H1 2020 were mostly due to pulling forward user acquisitions that would have occurred in the future meaning a softer H2 2020. Q2 2020 revenues / EPS were $6.15bn / $1.59 ahead of revenue expectations of $6.08bn but behind...
Google investment clarifies intentions. Jio Platforms now has both Facebook and Google as investors indicating that Jio’s strategy is not to create a digital ecosystem of its own, but instead to offer a series of India specific services to take advantage of the shift to digital. Google will invest $4.5bn for a 7.7% stake in Jio Platforms bringing the total...
The UK extracts its pound of flesh. The protestations of the UK operators against the Huawei ban is likely to fall on deaf ears as their claims are questionable and are really aimed at protecting the bottom line as the loss of Huawei will diminish competition making infrastructure a little bit more expensive. The UK has banned the sale of...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Jio Platforms – The vacuum.
Jio has a window to fill the void left by China. The banning of Chinese apps in India has created a convenient vacuum for which there is a great opportunity for Jio Platforms to fill. The Indian government is serious about blocking Chinese apps and has moved to block another 47 apps that were little more than mirrors that were...